On October 16, 2025, Australian iron ore producer Mount Gibson Iron released its Q3 2025 operations report (i.e., Q1 of the Australian 2026 fiscal year).
Specifically:
Iron Ore Production:Iron ore mining volume in Q3 2025 was 539,000 mt, down 20.7% QoQ, but up 18.7% YoY. The production decline was mainly due to final-stage pit stripping activities, with mining and shipments at the company's Koolan Island mine intentionally maintained at low levels during the quarter as planned; this work was largely completed within the quarter. With the stripping completed, the company expects production and sales volumes to increase significantly in the coming quarters, and unit cash costs to decrease substantially.
Iron Ore Sales:Iron ore sales volume in Q3 2025 was 550,000 mt, down 13.0% QoQ and down 1.6% YoY; the average iron grade was 64.3%. Seven shipments were completed during the quarter, with four shipments having an iron ore grade of 65%, and the remaining three shipments having grades between 63.0% and 63.5%. The company expects the raw ore grade to stabilize around 65% for the remaining mine life.
According to the company's latest published reserve data, as of June 30, 2025, the remaining proven iron ore reserves at Koolan Island were 4.1 million mt, with an average iron grade of 65.0%. Mine operations are expected to conclude in December 2026.
Cost Situation:The unit cash operating cost at Koolan Island in Q3 2025 was A$111/wmt (approximately $73/wmt), a decrease of A$3/wmt compared to the previous quarter, primarily due to increased total material movement and the implementation of cost control measures. The average price for high-grade iron ore product was $92/dmt (after deductions for impurities and freight), significantly higher than the $68/dmt in the previous quarter, mainly benefiting from improved grade, higher market prices, and flexible price adjustments during the quarter.
FY2026 Guidance Targets:With the stripping work completed, the company expects iron ore shipments to increase significantly and unit costs to decrease markedly in subsequent quarters of FY2026. Total iron ore sales for FY2026 are projected to be 3.0-3.2 million mt, with an average FOB cash operating cost of A$80-85/wmt (approximately $50-55/wmt).
